'On January 30th Mr. Gladstone offered Chamberlain the Admiralty, after Hartington had refused to join the Government. Chamberlain came and saw me, and was to go back to Mr. Gladstone at six. He thought he had no alternative but to accept a place in the Government, although he did not like the Admiralty. Mr. Gladstone showed him a form of words as to Irish Home Rule. It was equivalent to a passage in Sexton's [Footnote: Home Rule M.P. for S. Sligo, 1885-1886; Belfast W., 1886-1892.] speech on the 22nd, at which Mr. Gladstone had been seen to nod in a manner which implied that he had suggested the words. The proposal was, as we knew it would be, for inquiry. Chamberlain did not object to the inquiry, but objected to the Home Rule. Chamberlain, before returning to Mr. Gladstone, wrote him a very stiff letter against Home Rule, which somewhat angered him. On Sunday, January 31st, Chamberlain wrote that for personal reasons he had sooner not accept the Admiralty. Mr. Gladstone saw Chamberlain again later in the day, on the Sunday, and asked what it was then that he wanted; to which Chamberlain replied, "The Colonies," and Mr. Gladstone answered, "Oh! A Secretary of State." Chamberlain was naturally angry at this slight, and being offered by Mr. Gladstone the Board of Trade, then refused to return to it. After leaving Mr. Gladstone he went to Harcourt, and told Harcourt that he would take the Local Government Board, "but not very willingly." On Monday, February 1st, I asked Chamberlain to reconsider his decision about the Admiralty, and found that he would have been willing to have done so, but that it was now too late. On the 2nd Mr. Gladstone wrote me a very nice letter quoted above, [Footnote: Chapter XLII., p.172.] about the circumstances relating to the trial then coming on which made it impossible for him to include me in the Ministry. Morley wrote: "Half my satisfaction and confidence are extinguished by your absence. It may and will make all the difference."' Mr. Morley's apprehension was justified by events.